Paragon Bank expands Zeti partnership to boost net zero asset finance for SMEs
- Perry Richardson
- Feb 11
- 3 min read
Paragon Bank’s SME Lending division has expanded its partnership with fintech firm Zeti, formalising its role as the bank’s technology partner to support asset finance linked to the UK’s net zero transition.
Under the agreement, Zeti’s cloud-based platform, ZetiOS, will be integrated more deeply into Paragon’s lending operations, providing the bank with access to real-time asset data, including emissions tracking and asset health monitoring. The move is intended to improve automation, financial and sustainability reporting, and provide enhanced ESG intelligence across Paragon’s financed portfolio.
Paragon said the additional data capability will enable more informed lending decisions and faster credit processes, with the aim of improving the customer experience for small and medium-sized enterprises investing in low-emission transport and energy infrastructure.
The two firms have worked together since 2023, notably through Paragon’s relationship with Otto Car, described as Europe’s largest private hire fleet provider. Using the ZetiOS platform, the partners have supported a pay-per-use financing model for Otto Car’s low-emission vehicle portfolio.
Enhanced fintech agreement gives lender real-time emissions and asset data to support low-emission transport and renewable energy funding
According to the companies, 75 vehicles have been funded under the structure to date. The scheme has delivered 226,000 kilograms of CO₂ savings, equivalent to the annual energy use of around 28 homes, and has avoided 65.5 kilograms of NOx emissions, broadly comparable to the yearly output of 15 to 20 average diesel cars. More than 1.27 million zero or low-emission miles have been driven under the programme.
For fleet operators and lenders operating in the taxi and private hire sector, the use of real-time operational and environmental data represents a shift in how risk and asset performance can be assessed. Pay-per-use models, linked to vehicle usage and emissions performance, allow funding structures to reflect actual utilisation rather than fixed repayment schedules, which may be particularly relevant in high-mileage urban fleets.
Beyond transport, the expanded partnership will support financing for a broader range of renewable energy assets. These include rooftop solar installations, combined heat and power systems, and small-scale wind projects. The model is designed to align funding with actual energy production and usage, building on established Power Purchase Agreement structures.
For SMEs facing rising energy costs and increasing regulatory and supply-chain pressure to demonstrate decarbonisation progress, access to asset-level performance data may help unlock funding while strengthening reporting capabilities. The collaboration positions Paragon to scale data-led sustainable asset finance as lenders respond to tightening ESG expectations and growing demand for clean transport and distributed energy solutions across the UK economy.
Matt Bass, Head of Specialist Finance in Paragon’s SME Lending division, said: “As a FTSE 250 lender working with more than 16,000 UK SMEs, Paragon is committed to funding a greener future for SMEs and the UK economy.
“We want to make a meaningful difference by providing simple and modern finance solutions which enable SMEs to have assets that reduce emissions and provide energy certainty. Zeti’s team is entirely aligned with these goals and their tech expertise enables us to do exactly that. Whether it’s pay‑per‑use vehicle finance or multi‑asset renewable energy solutions, this partnership allows us to deliver smarter, data‑driven outcomes for our customers at scale.”
Dave Kennon, Commercial Director, Zeti, added: “This partnership is a great example of what happens when deep finance experience meets genuinely innovative technology. We have worked closely with the team at Paragon to remove many of the traditional barriers that slow down capital deployment, whether that is complexity, data gaps or rigid structures. By using ZetiOS software across its portfolio management, Paragon can reach a broader range of customers and asset classes, helping clients access flexible finance and new products that deliver long-term energy security at lower cost, while supporting net zero ambitions across transport, energy and beyond.”
Dan Saunders, Founder & CEO, Zeti, said: “From the outset, ZetiOS was built to modernise how capital connects with real-world assets. Our technology brings together data, insight and automation to give lenders the confidence to finance more customers, more efficiently, across a much wider set of asset and infrastructure use cases. Partnering with Paragon demonstrates how banks can move beyond traditional models and use software to support everything from vehicle finance to complex renewable and energy infrastructure assets.”
